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How to disclose foreign salary

Tax queries 386 views 5 replies

Dear Expart

My one of the client is employee of HCL India , and Company has transfeered him at his client side at sweden in january 2014.

my cleint received part salary from HCL and Part Salary from Client at sweden. and tax is deducted on both palce at India and at sweden and also return is filled at sweden.

My cleint want that his sweden Salary show in IT retrun in India and also show TDS at Sweden.

is it possible to show sweden Income in IT return in india or any scope to show sweden income in india.

 

please help.

Replies (5)

During the PY13-14, your client is resident and ordinarily resident and hence his Indian income (HCL in India) as well as foreign income (at Sweden) are taxable during the PY 13-14. However, relief u/s 90/90A/91 can be claimed on the doubly taxed foreign income.

India entered DTAA agreement with Sweden.. Under DTAA there are two methods to claim tax relief. Exception method and tax credit method..  under exempted method Income is taxed in one country and exempted in another. Under Tax credit method is taxed in both counties Tax relief can be claimed in the country of residence...  In Tax credit method first Income earned from foreign and India.calculate tax on total Income. After that calculate avg rate of Tax.  Now multiply avg rate with Income earned from foreign county.  Relief under section 90 is lower of Tax paid in foreign country or avg tax on foreign income. 

India entered DTAA agreement with Sweden.. Under DTAA there are two methods to claim tax relief. Exception method and tax credit method..  under exempted method Income is taxed in one country and exempted in another. Under Tax credit method is taxed in both counties Tax relief can be claimed in the country of residence...  In Tax credit method first Income earned from foreign and India.calculate tax on total Income. After that calculate avg rate of Tax.  Now multiply avg rate with Income earned from foreign county.  Relief under section 90 is lower of Tax paid in foreign country or avg tax on foreign income. 

Dear All

thaks for replay. but in the financial year 2015-16 he is NRI as per IT Act, then it is mandetory to disclose swedewn salary in IT return in india

If he is NRI its not mandatory to disclose Inomce earned outside india.


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